Answered: Which of thne following does not lead…

Which of thne following does not lead to an increase in consumption A Higher unemployement (B Higher income (c) Higher wealth D Lower interest rates

MACROECONOMICS FOR TODAY

10th Edition

ISBN:9781337613057

Author:Tucker

Publisher:Tucker

Chapter8: The Keynesian Model

Section: Chapter Questions

Problem 19SQ

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Concept explainers

Laffer Curve Analysis

In terms of economics, the Laffer curve was popular among those economists who were or who belonged to the supply side of the economic peripheral. This concept was popularized by the famous supply-side economist known as Arthur Laffer. This curve illustrated the relationship between the tax rates and government revenue. It is already known that the tax which the public or individuals residing in an economy bear is the revenue or income of the government with the help of which the government does all the necessary works in the society, which is beneficial for the economy.

Question

Give complete explanation....

Which of the following does not lead to an increase in consumption
A Higher unemployement
B Higher income
Higher wealth
D) Lower interest rates

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